This is a conditional investment capital project chosen by Ninh Thuan provincial authorities with a total investment capital of VND12 trillion. The special feature of the project is that the investor not only built a solar power plant, but also a 500KV transformer station and the 500KV Thuan Nam-Vinh Tan transmission line with a total cost of VND2 trillion.

Under the investment plan, all 450 MW produced by the plant would be sold to EVN in exchange for the investor’s decision to build the 500KV transformer station.

However, only 277.88MW out of the total 450MW of the plant have set electricity selling prices. Since March 5, 2022, the exploitation of the project’s capacity of 172MW (40 percent of total capacity) has been suspended because there has been no decision about the price for the portion of this capacity.

This has seriously affected the financial plan of the project.

In a document to Ninh Thuan provincial People’s Committee and the Ministry of Industry and Trade (MOIT), the Trung Nam Group said that 40 percent of the project’s capacity has not been mobilized, which means that the project is operating at only 60 percent of the designed capacity, thus affecting the financial plan the investor promised with creditors. This could lead to insolvency.

Other investors and the Electricity of Vietnam (EVN) benefit from the 500KV transmission line built by Trung Nam. This is seen as unfair for Trung Nam.

MOIT has asked Ninh Thuan authorities to instruct Trung Nam to urgently draw up a plan to adjust the construction design, and complete a dossier for work acceptance and legal procedures.

On March 8, the National Assembly's Committee for People’s Aspirations, joining forces with some National Assembly agencies and the Ninh Thuan province’s Delegation of National Assembly Deputies, held a working session with MOIT, EVN and other ministries on the suspended 172MW capacity.

On January 7, 2023, MOIT released Decision 21, stipulating that the ceiling price for transitional solar power projects is VND1,185-1,508/kwh, half of the preferential price of VND2,086 applied to the projects becoming operational before 2021.

Regarding the 172MW capacity, the price will be defined after negotiations with EVN.

EVN affirmed that suspension of the mobilization of the 172MW capacity when there is still no price mechanism comes in line with the current regulations.

Luong Bang